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Smart & Secured UKRAINE ENERGY

Презентація "Smart & Secured UKRAINE ENERGY",01.02.2017

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Page 1: Презентація "Smart & Secured UKRAINE ENERGY",01.02.2017

Smart & Secured UKRAINE ENERGY

Page 2: Презентація "Smart & Secured UKRAINE ENERGY",01.02.2017

Agenda

1. Ukraine DSO Issues, challenges and Business needs – NES experience

2. How the NES AMI Platform can help Ukraine3. Smart LVIV OBLENERGO 4. Smart VOLYN OBLENERGO5. Smart KHMELNYTSK OBLENERGO6. Proposed Solution Description7. NES Capabilities & Experience 8. Questions

Page 3: Презентація "Smart & Secured UKRAINE ENERGY",01.02.2017

Agenda

1. Ukraine DSO Issues, challenges and Business needs – NES experience

2. How the NES AMI Platform can help Ukraine3. Smart LVIV OBLENERGO 4. Smart VOLYN OBLENERGO5. Smart KHMELNYTSK OBLENERGO6. Proposed Solution Description7. NES Capabilities & Experience 8. Questions

Page 4: Презентація "Smart & Secured UKRAINE ENERGY",01.02.2017

Energy bills & Cash-flow – Meter 2 Cash process – Revenue assurance

Incorrectly estimated readings, Non-technical losses, Errors in reading proces, Non-payment, Delayed payments, Bad debts, Lack of revenue assurance processes

DSO Issues, challenges and Business needsNES experience

Many important business processes conducted by the DSO’s require re-engineering to increase operational and financial efficiency.

Page 5: Презентація "Smart & Secured UKRAINE ENERGY",01.02.2017

Poor Grid quality and non efficient grid maintenance processes

Huge number of outages Long time to restore Lack of energy quality control, Lack of automation, Poor grid technical status knowledge, Technical losses Lack of data for analytics .

Many important business processes conducted by the DSO’s require re-engineering to increase operational and financial efficiency.

DSO Issues, challenges and Business needsNES experience

Page 6: Презентація "Smart & Secured UKRAINE ENERGY",01.02.2017

Security of the grid and energy supply process

Disperse and out of date IT / OT Systems The aging critical infrastructure (grid control, substation

automation - if any) Lack of well defined cyber security regulations and politics Lack of control and update of security mechanisms Lack of deep knowledge of potential security issues and security

risk mitigation techniques

Many important business processes conducted by the DSO’srequire re-engineering to increase operational and financial efficiency.

DSO Issues, challenges and Business needsNES experience

Page 7: Презентація "Smart & Secured UKRAINE ENERGY",01.02.2017

Enhancement of quality of supply: Reduce number of outages and their durations

Advanced load management: Implement and promote Time of Use tariffs

Operation & Maintenance labor cost reduction: limit need for personnel for basic activities and

upgrade personnel skills Customer satisfaction:

Increase tariff options and implement outage management

Achieve financial efficiency of Meter to Cash processReduce non-technical lossess and uncollectables

Enhance the overall security of the Grid and AMI Systems in particular

Implement SmartGrid security mechanisms and processes

DSO Issues, challenges and Business needsNES experience

Page 8: Презентація "Smart & Secured UKRAINE ENERGY",01.02.2017

Advanced demand management: Reduce peak loads via load control

Renewable energy integration: Integrate net metering functionalities

Retail offer improvement: Provide new services to customers

Multipurpose billing services: Unify data collection for electricity, water and gas

utilities

DSO Issues, challenges and Business needsNES experience

Page 9: Презентація "Smart & Secured UKRAINE ENERGY",01.02.2017

Agenda

1. Ukraine DSO Issues, challenges and Business needs – NES experience

2. How the NES AMI Platform can help Ukraine3. Smart LVIV OBLENERGO 4. Smart VOLYN OBLENERGO5. Smart KHMELNYTSK OBLENERGO6. Proposed Solution Description7. NES Capabilities & Experience 8. Questions

Page 10: Презентація "Smart & Secured UKRAINE ENERGY",01.02.2017

How the NES AMI Platform can help

Business Need = take the challenge and solve the issue

Page 11: Презентація "Smart & Secured UKRAINE ENERGY",01.02.2017

Energy bills & Cash-flow – Meter 2 Cash process – Revenue assurance

Incorrectly estimated readings No more estimation – real consumption data Non-technical losses Automatic Theft detection, Tampering alerts Errors in reading proces, No more manual readings = no more errors Non-payment, Service limit, Remote and automated disconnect/reconnect Delayed payments, Service limit, Remote and automated disconnect/reconnect Bad debts, Prepayment Lack of revenue assurance All above

processes

How the NES AMI Platform can help

NES AMI Platform

Page 12: Презентація "Smart & Secured UKRAINE ENERGY",01.02.2017

Poor Grid quality and non efficient grid maintenance processes

Huge number of outages Long time to restore Lack of energy quality control, Lack of automation, Poor grid technical status knowledge Technical losses Lack of data for analytics

LV Clean-up, Outage detection, Fault detection supportOutage detection, Fault detection supportVarious energy quality variables data collectionPossible to manage LV grid & share LV data with SCADAGrid tech. data collection during clean-up and daily opps. Transformer monitoring & balacing, feeder level balancing Full data available

NES AMI Platform

How the NES AMI Platform can help

Page 13: Презентація "Smart & Secured UKRAINE ENERGY",01.02.2017

Security of the grid and energy supply process

Disperse and out of date IT / OT Systems The aging critical infrastructure (grid control, substation automation - if any) Lack of well defined cyber security regulations and politics Lack of control and update of security mechanisms Lack of deep knowledge of potential security issues and security risk mitigation

techniques

Full end to end system security implemented and described

NES AMI Platform

How the NES AMI Platform can help

Page 14: Презентація "Smart & Secured UKRAINE ENERGY",01.02.2017

Most Proven & Reliable: NES offers the same PLC technology that is powering almost 40M smart meters with millions deployed now for 14+ years. This PLC technology averages 99.8%+ daily data availability and exceeds SLAs in the projects.

Most Secure: NES platform provides comprehensive multi-layer security as a vital national security requirement for Ukarine utilizing standards-based state-of-the-art security with advanced tamper/intrusion detection and upgradeable security without changing the hardware platform.

Interoperable: Based on open published standards (ETSI) and not proprietary closed standards. Supported by OSGP Alliance with multiple vendors and integrators, and interoperability testing and certification by DNV GL (KEMA).

Future proof: Modular meter and DC design enables future remote upgrades for new functionality and new security. Linux-based DC supports multiple smart grid applications, extensible I/O and distributed control.

Rugged: Reliability has been demonstrated and tested in harsh environments similar to some rural areas of Ukraine

How the NES AMI Platform can help

Page 15: Презентація "Smart & Secured UKRAINE ENERGY",01.02.2017

Quality: Designed and tested for reliability (20 year life with < 0.2% annual failures). HALT/HASS, environmental, MTBF lifetime testing Product, Operational and Institutional Quality Management

Programs Design for Manufacturing (DFM): Designed for easy portability

and technology transfer to local production or local assembly. Certified: All of our meters are MID certified by NMI and OSGP

Certified by DNV GL (KEMA). Grid Management: Advanced application platform for smart grid

management—not just meters. LVGM (low voltage grid mapping) for topology management combined with tampering and power quality measurments for advanced grid analytics, in addition to the advanced load management.

Innovation: NES HQ and R&D are located in Silicon Valley; products are manufactured in EU.

How the NES AMI Platform can help

Page 16: Презентація "Smart & Secured UKRAINE ENERGY",01.02.2017

16

State-of-the-art Meter2Cash process Automated meter reading

operation. Eliminate estimates, re-reads and reader errors / fraud

Pre-payment Reduction in non-technical

losses Terminal tamper detection

even while the meter is powered down

Immunity to severe magnetic tamper

Neutral metering and disconnection

Load-side bypass checking Reduction in technical losses

Automated transformer balancing

Right-sizing distribution transformers

Increase service offerings Flexible multi-tariff Integration of water, gas,

distributed PV, storage, wind Security, life-safety value-

added services

Transformer protection and demand-side management Rapid load reduction Unique mapping of loads to

transformers ensures correct load-reduction decisions

Enhanced reliability and quality of supply Unique wire analysis by PLC

enables prediction of transformer, cable, splice failures

Outage pinpointing through rapid restoration reporting solution

Grid management Improved customer service

Immediate, 24/7 move-in/move-out processing

Reduction/elimination of billing errors

Immediate online investigation of power quality issues

Increase Grid Security

Benefits for DSOHow DSO will benefit from NES Architecture

Page 17: Презентація "Smart & Secured UKRAINE ENERGY",01.02.2017

Benefits for DSOBusiness Case Development 1/3

NES, during the Implementation Planning Phase will provide a Business Case report to Client to indicate an “operational ” cost - benefit business case evaluation, of a future AMI implementation throughout Client service territory.

The term “operational” means that the scope is focused on AMI specifically and a Client delineated set of potential costs and benefits.

In performing a future evaluation, NES uses methodologies that follow generally accepted professional industry standards in estimating these projected costs and benefits.

In connection with performing this evaluation, NES will examine and use documents and metrics that will be requested by NES and supplied by Client in order to customize the Business Case specifically for Client.

The NES evaluation includes the specification of 10 benefits for Field Operations and Outage management and 7 benefits for Billing, Customer Care and Others. Many of these benefits are avoided costs. Each benefit is built from a detailed understanding of the proposed business process change that will impact the activity area.

The financial impacts associated with AMI benefits are determined by comparing two states. First, the “Before AMI Implementation”

state will extrapolate Client’s current business structure and cost over time.

Second, an “After AMI Implementation” business state is similarly constructed, which estimates the impacts over time of automation.

Page 18: Презентація "Smart & Secured UKRAINE ENERGY",01.02.2017

Field Operations & Outage Management

1. Manual meter reads (100% cost reduction)2. Manual off-cycle meter reads (100% cost

reduction)3. Manual disconnect/reconnects (100% cost

reduction)4. Single call dispatches for false meter issues

(100% cost reduction)5. Conduct remote meter sampling/testing

(100% cost reduction)6. AMR meter reads (80% cost reduction)7. Voltage monitoring (80% cost reduction)8. Outage assessment time (40% cost

reduction)9. Outage repair time (20% cost reduction)10. False outage calls (80% cost reduction)

Billing, Customer Care & Other

1. Power theft/tampering (70% cost reduction)2. Support for Dynamic Pricing "Out-of-Box"

(70% implementation cost reduction)3. Incorrectly moved/orphaned meters

(100% cost reduction)4. Re-bills - annually (30% cost reduction)5. Customer Inquiries/Billing Disputes

(90% cost reduction)6. Uncollectables (90% cost reduction)7. Offering Prepaid

(90% implementation cost reduction)

Based on the interviews and deep understanding of our Client’s processes and infrastructure, NES is able to enrich Business Case by calculation of benefits, that are unique to our Client.

(based on "benchmark" data that impact respective calculations)

Benefits for DSOBusiness Case Development 2/3

Page 19: Презентація "Smart & Secured UKRAINE ENERGY",01.02.2017

Field Operations & Outage Management

1. Transformer predictive maintenence against failures (based on transformer montoring)

2. Power quelity isues (based on meter sensors capabilities)

3. LV grid behaviour continous monitoring (outage prediction – „meters as synchrophasors”)

4. Outage detections5. Outage detection and Restoration Raporting

(SAIDI / SAIFI)6. Service Quality Assurance Application

Billing, Customer Care & Other

1. Revenue loss2. Prepayment3. Customer portal

Other values, that are specyfic for the given DSO – not calculated withi Business Case simple way

Benefits for DSOBusiness Case Development 3/3

Page 20: Презентація "Smart & Secured UKRAINE ENERGY",01.02.2017

Agenda

1. Ukraine DSO Issues, challenges and Business needs – NES experience

2. How the NES AMI Platform can help Ukraine3. Smart LVIV OBLENERGO 4. Smart VOLYN OBLENERGO5. Smart KHMELNYTSK OBLENERGO6. Proposed Solution Description7. NES Capabilities & Experience 8. Questions

Page 21: Презентація "Smart & Secured UKRAINE ENERGY",01.02.2017

NES Estimation Highlights for Lviv Turn Key AMI Pilot Project

Page 22: Презентація "Smart & Secured UKRAINE ENERGY",01.02.2017

Project Mission

.The Project Mission is to bring Ukraine energy grid in to the new era of operations with outstanding level of safety, reliability and efficiency by implementing together a market leading Smart Metering / SmartGrid solution.

This enables Ukraine DSO’s to provide to the community a continuous and qualitative supply with energy power at competitive prices, also to be an efficient public company in terms of financial results.

22

Page 23: Презентація "Smart & Secured UKRAINE ENERGY",01.02.2017

Project Objectives:

The proposed implementation Project will have the following main goals in order to meet Ukrainian Energy Regulatory Office Objectives Enhancement of quality of supply - Reduce number of

outages and their durations Advanced load management - Implement and promote Time

of Use tariffs Operation & Maintenance labor cost reduction - limit need

for personnel for basic activities and upgrade personnel skills

Customer satisfaction - Increase tariff options and implement outage management

Achieve financial efficiency of Meter to Cash process - Reduce non-technical lossess and uncollectables

Enhance the overall security of the Grid and AMI Systems in particular - Implement SmartGrid security mechanisms and processes

Advanced demand management - Reduce peak loads via load control

Renewable energy integration - Integrate net metering functionalities

Retail offer improvement - Provide new services to customers Multipurpose billing services - Unify data collection for

electricity, water and gas utilities

Facts and Challenges:

Energy bills & Cash-flow – Meter 2 Cash process – Revenue assurance

Incorrectly estimated readings Non-technical losses, Errors in reading proces, Non-payment, Delayed payments, Bad debts, Lack of revenue assurance processes

Poor Grid quality and non efficient grid maintenance processes

Huge number of outages Long time to restore Lack of energy quality control, Lack of automation, Poor grid technical status knowledge, Technical losses Lack of data for analytics

Security of the grid and energy supply process Disperse and out of date IT / OT Systems The aging critical infrastructure (grid control, substation

automation - if any) Lack of well defined cyber security regulations and

politics Lack of control and update of security mechanisms Lack of deep knowledge of potential security issues and

security risk mitigation techniques

Ukraine Current Situation

23

Page 24: Презентація "Smart & Secured UKRAINE ENERGY",01.02.2017

Lviv DSO Key Facts

24

Business Case MetricsProject Life (Project Life is typically between 20 and 25 years) 16

Discount Rate 2,00%

Total Meters InstalledTotal Meters being replaced/Installed 304 604

Field Operations Cost Information (Note: enter utility data in yellow fields to derive benefit calculations)

Number Of Off-Cycle Meter Reads Per Month 3 600

Number Of Disconnect/Reconnect Requests Monthly 1 080

Total Resources Assigned To Voltage Monitoring 2,00

Estimated Number of Annual Outages 7 400,00

Average Duration Per Outage (Hours) 0,47

Total Resources Assigned To Assess Outages 2,00

Total Resources Assigned To Outage Repair 50,98

Billing-Customer Care-Other Cost Information (Note: enter utility data in yellow fields to derive benefit calculations)

Total Annual Revenue (based on total meters ordered - not based on total meter population) 1 967 186 760,00 ₴

% Annual Revenue Lost to Theft (estimate is 2% in U.S.) 3,00%

Average monthly meter bill 538,00 ₴

Total number of bills sent out monthly 299 104

Estimated percent of bi ll ing related customer calls (Monthly) 5,00%

Cost per inquiry 5,00 ₴

Percent of non-paying customers 2,60%

Page 25: Презентація "Smart & Secured UKRAINE ENERGY",01.02.2017

Phase I – Proposed Setup

Phase I• 304 604 Meters (SP-, PP- Meters) for Residential & Commercial customers - Installation• Implementation of the Head-end System for Smart Meters (NES HES) + integration with grid• LV Grid Clean-up• Achieving Data Collection KPIs• Program Management

Phase II• CT Meters for MV/LV Transformers• Balancing System • CT Smart Meters for Industrial Customers• Metering Infrsatructure Asset Management System• Business Processes Analysis and Re-engineering• Implementation of the Meter Data Management (MDM) • Integration into the third party CRM & Billing System for the Meter to Cash process

25

Page 26: Презентація "Smart & Secured UKRAINE ENERGY",01.02.2017

Architecture – Phase I

26

Phase I

Page 27: Презентація "Smart & Secured UKRAINE ENERGY",01.02.2017

Phase I – Turn Key Project Focused on Residential Meters

27

Project exclusive deliverables:

NES AMI-System including: NES System Software – Smart Grid platform Software Element Manager – HES System User Web Interface including AMI network Automated Topology

Management (ATM) AMI infrastructure components, including SP/PP-Phase Smart Meters, Distributed Control Nodes,

Program Management All sub-project management and coordination Result oriented approach Requirements management approach Organisation Change Management

Process Oriented implementation Installation Logistics and Workforce Management

27

Page 28: Презентація "Smart & Secured UKRAINE ENERGY",01.02.2017

Based on the NES experience from similar implementation Projects, we present below the financial estimation – only as an initial forecast, that might change, due to new facts / knowledge regarding Client Enterprise strategy and challenges as well as NES and its Partners strategy changes

Phase I – Turn Key Project Focused on Residential & Commercial Meters Financial Information

Metering Infrastructure Elements + Installation ЛьвовMeters 304 604 NES HES SYSTEM & Metering inftastructure $28 839 172Installation and implementation Services $2 854 401Integration, HW/SW Operating, Implementation and Maintenence Services Costs $554 290

TOTAL PHASE I $32 158 081

Return on Investment 16 years / 2% Interest $50 306 110

Page 29: Презентація "Smart & Secured UKRAINE ENERGY",01.02.2017

Program Management – prefered method Due to the complexity of the project that consist of number of defined multi-item software and infrastructure implementation areas (including Billing and CRM Project, that has to be fully coordinated with AMI and GMS implementation) and the number of the teams that will cooperate to achieve the goals agreed with OSHEE – NES and S&T strongly advice OSHEE to utilize the Program Management method, to keep the several parallel projects coordinated and governed properly.

Page 30: Презентація "Smart & Secured UKRAINE ENERGY",01.02.2017

Agenda

1. Ukraine DSO Issues, challenges and Business needs – NES experience

2. How the NES AMI Platform can help Ukraine3. Smart LVIV OBLENERGO 4. Smart VOLYN OBLENERGO5. Smart KHMELNYTSK OBLENERGO6. Proposed Solution Description7. NES Capabilities & Experience 8. Questions

Page 31: Презентація "Smart & Secured UKRAINE ENERGY",01.02.2017

NES Estimation Highlights for ПАТ Волиньобленерго Turn Key AMI Pilot Project

Page 32: Презентація "Smart & Secured UKRAINE ENERGY",01.02.2017

Project Mission

.The Project Mission is to bring Ukraine energy grid in to the new era of operations with outstanding level of safety, reliability and efficiency by implementing together a market leading Smart Metering / SmartGrid solution.

This enables Ukraine DSO’s to provide to the community a continuous and qualitative supply with energy power at competitive prices, also to be an efficient public company in terms of financial results.

32

Page 33: Презентація "Smart & Secured UKRAINE ENERGY",01.02.2017

Project Objectives:

The proposed implementation Project will have the following main goals in order to meet Ukrainian Energy Regulatory Office Objectives Enhancement of quality of supply - Reduce number of

outages and their durations Advanced load management - Implement and promote Time

of Use tariffs Operation & Maintenance labor cost reduction - limit need

for personnel for basic activities and upgrade personnel skills

Customer satisfaction - Increase tariff options and implement outage management

Achieve financial efficiency of Meter to Cash process - Reduce non-technical lossess and uncollectables

Enhance the overall security of the Grid and AMI Systems in particular - Implement SmartGrid security mechanisms and processes

Advanced demand management - Reduce peak loads via load control

Renewable energy integration - Integrate net metering functionalities

Retail offer improvement - Provide new services to customers Multipurpose billing services - Unify data collection for

electricity, water and gas utilities

Facts and Challenges:

Energy bills & Cash-flow – Meter 2 Cash process – Revenue assurance

Incorrectly estimated readings Non-technical losses, Errors in reading proces, Non-payment, Delayed payments, Bad debts, Lack of revenue assurance processes

Poor Grid quality and non efficient grid maintenance processes

Huge number of outages Long time to restore Lack of energy quality control, Lack of automation, Poor grid technical status knowledge, Technical losses Lack of data for analytics

Security of the grid and energy supply process Disperse and out of date IT / OT Systems The aging critical infrastructure (grid control, substation

automation - if any) Lack of well defined cyber security regulations and

politics Lack of control and update of security mechanisms Lack of deep knowledge of potential security issues and

security risk mitigation techniques

Ukraine Current Situation

33

Page 34: Презентація "Smart & Secured UKRAINE ENERGY",01.02.2017

ПАТ Волиньобленерго DSO Key Facts

34

Business Case MetricsProject Life (Project Life is typically between 20 and 25 years) 16

Discount Rate 2,00%

Total Meters InstalledTotal Meters being replaced/Installed 367 213 Field Operations Cost Information (Note: enter utility data in yellow fields to derive benefit calculations)

Number Of Off-Cycle Meter Reads Per Month 3 123 Number Of Disconnect/Reconnect Requests Monthly 207 Total Resources Assigned To Voltage Monitoring 6,00 Estimated Number of Annual Outages 6 148,00 Average Duration Per Outage (Hours) 2,75 Total Resources Assigned To Assess Outages 8Total Resources Assigned To Outage Repair 61,46 Billing-Customer Care-Other Cost Information (Note: enter utility data in yellow fields to derive benefit calculations)

Total Annual Revenue (based on total meters ordered - not based on total meter population) 749 114 520,00 ₴% Annual Revenue Lost to Theft (estimate is 2% in U.S.) 13,00%Average monthly meter bil l 170,00 ₴Total number of bil ls sent out monthly 259 488 Estimated percent of bil l ing related customer cal ls (Monthly) 3,00%

Cost per inquiry 9,52 ₴Percent of non-paying customers 4,05%

Page 35: Презентація "Smart & Secured UKRAINE ENERGY",01.02.2017

Phase I – Proposed Setup

Phase I• 304 604 Meters (SP-, PP- Meters) for Residential & Commercial customers - Installation• Implementation of the Head-end System for Smart Meters (NES HES) + integration with grid• LV Grid Clean-up• Achieving Data Collection KPIs• Program Management

Phase II• CT Meters for MV/LV Transformers• Balancing System • CT Smart Meters for Industrial Customers• Metering Infrsatructure Asset Management System• Business Processes Analysis and Re-engineering• Implementation of the Meter Data Management (MDM) • Integration into the third party CRM & Billing System for the Meter to Cash process

35

Page 36: Презентація "Smart & Secured UKRAINE ENERGY",01.02.2017

Architecture – Phase I

36

Phase I

Page 37: Презентація "Smart & Secured UKRAINE ENERGY",01.02.2017

Phase I – Turn Key Project Focused on Residential Meters

37

Project exclusive deliverables:

NES AMI-System including: NES System Software – Smart Grid platform Software Element Manager – HES System User Web Interface including AMI network Automated Topology

Management (ATM) AMI infrastructure components, including SP/PP-Phase Smart Meters, Distributed Control Nodes,

Program Management All sub-project management and coordination Result oriented approach Requirements management approach Organisation Change Management

Process Oriented implementation Installation Logistics and Workforce Management

37

Page 38: Презентація "Smart & Secured UKRAINE ENERGY",01.02.2017

Based on the NES experience from similar implementation Projects, we present below the financial estimation – only as an initial forecast, that might change, due to new facts / knowledge regarding Client Enterprise strategy and challenges as well as NES and its Partners strategy changes

Phase I – Turn Key Project Focused on Residential & Commercial Meters Financial Information

Metering Infrastructure Elements + Installation Волиньобленерго Meters 367 213 NES HES SYSTEM & Metering inftastructure $34 715 800Installation and implementation Services $3 408 603Integration, HW/SW Operating, Implementation and Maintenence Services Costs $570 900

TOTAL PHASE I $38 588 911

Return on Investment 16 years / 2% Interest $57 369 165

Page 39: Презентація "Smart & Secured UKRAINE ENERGY",01.02.2017

Program Management – prefered method Due to the complexity of the project that consist of number of defined multi-item software and infrastructure implementation areas (including Billing and CRM Project, that has to be fully coordinated with AMI and GMS implementation) and the number of the teams that will cooperate to achieve the goals agreed with OSHEE – NES and S&T strongly advice OSHEE to utilize the Program Management method, to keep the several parallel projects coordinated and governed properly.

Page 40: Презентація "Smart & Secured UKRAINE ENERGY",01.02.2017

Agenda

1. Ukraine DSO Issues, challenges and Business needs – NES experience

2. How the NES AMI Platform can help Ukraine3. Smart LVIV OBLENERGO 4. Smart VOLYN OBLENERGO5. Smart KHMELNYTSK OBLENERGO6. Proposed Solution Description7. NES Capabilities & Experience 8. Questions

Page 41: Презентація "Smart & Secured UKRAINE ENERGY",01.02.2017

NES Estimation Highlights for KHMELNYTSKOBLENERGOTurn Key AMI Pilot Project

Page 42: Презентація "Smart & Secured UKRAINE ENERGY",01.02.2017

Based on the NES experience from similar implementation Projects, we present below the financial estimation – only as an initial forecast, that might change, due to new facts / knowledge regarding Client Enterprise strategy and challenges as well as NES and its Partners strategy changes

Phase I – Turn Key Project Focused on Residential & Commercial Meters Financial Information

Metering Infrastructure Elements + Installation KamianetMeters 41,823 NES HES SYSTEM & Metering inftastructure $3,566,932Installation and implementation Services $441,665Integration, HW/SW Operating, Implementation and Maintenence Services Costs $251,724

TOTAL PHASE I $4,260,321

Return on Investment 16 years / 2% Interest $4,411,502

Page 43: Презентація "Smart & Secured UKRAINE ENERGY",01.02.2017

Agenda

1. Ukraine DSO Issues, challenges and Business needs – NES experience

2. How the NES AMI Platform can help Ukraine3. Smart LVIV OBLENERGO 4. Smart VOLYN OBLENERGO5. Smart KHMELNYTSK OBLENERGO6. Proposed Solution Description7. NES Capabilities & Experience 8. Questions

Page 44: Презентація "Smart & Secured UKRAINE ENERGY",01.02.2017

Process High Data Volumes, Share Relevant

Information

Eliminate Failure, Sense and Respond, Drive Total Reliability

Local, Real-Time,Autonomous

Decisions

Make it Easy to Add Applications, Over

Time

Proposed Solution DescriptionNES System - The Energy Control Network for Grid Modernization

Page 45: Презентація "Smart & Secured UKRAINE ENERGY",01.02.2017

Proposed Solution DescriptionNES System – 3 Tier Architecture

Node Layer

Linux-basedCorrelation of data from devicesUSB connectivity to other devices & networksLV Grid MappingApps for local data processing and delegated control from head-endControl of communication, no lost bandwidth due to collisionsPrescribes repeater path for all communicationDiscovery of newly installed or orphaned devicesMaintains most efficient communication path to all devices at all times, dynamic update to new conditionsAutomatic collection of all data records to DC as soon as available

Data Center Software

Meter to DC assignment reducing cross talk influencesDC function configuration to ensure adequate time for communication Analytics coordinating across all levels of architectureNew Grid Apps with modern customizable UIsExpanded integration and device communications abilityEnable both apps and monitoring/grid health dashboard

Grid Sensors/Meters

New communication media underneath OSGPGPRS/UMTS point-to-point, Wireless MeshingBPSK proven, reliable PLC technologyHigh speed PL (G3 or IEEE 1901.2) Security enhancement (AES encryption, key management services)Measures signal strength and margin on all communicationsAll devices can act as repeaters for communication and discoveryHeadroom for new firmware enhancements and new features, expand networking expansionOther protocols transported by OSGP, i.e. DLMS

Page 46: Презентація "Smart & Secured UKRAINE ENERGY",01.02.2017

Proposed Solution DescriptionOSGP Alliance

Page 47: Презентація "Smart & Secured UKRAINE ENERGY",01.02.2017

Open Smart Grid Protocol (OSGP) is an open standard used for smart grid applications and digital metering worldwide

Brings high-performance and reliability TODAY Best-in-class CENELEC A-band power line performance Highly efficient and scalable communications and control protocol Adaptive and directed meshing

Provides headroom to grow and support future applications Built-in, mandatory security and privacy for every data exchange Interoperability with other standards

Enables technology evolution while preserving past investments

Proposed Solution DescriptionNES System - OSGP Is Built For a Networked Grid

Page 48: Презентація "Smart & Secured UKRAINE ENERGY",01.02.2017

48

End-to-end device communications & control Three tier architecture for decentralized applications Multi-vendor, multi-device interoperability The highest communication reliability in the industry, > 99.8%) Automatic topology management - OSGP-based systems automatically

discover the power line topology, meters and other devices connected to the power line, and can report this information back to the utility data center.

Rich power-quality data to enable sophisticated smart grid applications.

Secure firmware upgrades over the network. Non-meter devices can use the OSGP infrastructure to communicate

with the utility’s enterprise software. This makes the meter and other OSGP device data available to new smart grid applications.

Proposed Solution DescriptionOSGP Protocol Capabilities

Page 49: Презентація "Smart & Secured UKRAINE ENERGY",01.02.2017

Proposed Solution DescriptionNES System - Reliable Collection of Rich Data Set

No other vendor has been able to achieve this!Why this is so important?

Page 50: Презентація "Smart & Secured UKRAINE ENERGY",01.02.2017

Proposed Solution DescriptionNES System - Reliable Collection of Rich Data Set

Why this is so important…?

• Decreased Non-Technical Losses• Advanced tariff plans (TOU, CPP)• Demand Management• Reliable and rich meter data• Decreased OPEX

• Low Non-Technical losses• Automated processes & workflows• Clean & consistent data• Ready for Various market models• Ready for unboundling• Revenue Protection – meter & system• Collection improvements

• Low Technical losses • Advanced maintenance – CBM/PBM • Asset lifecycle management • Automated grid operations management• Low SAIDI & SAIFI

• Right decisions• Low risk• Secure planning

AMI Value Reverse pyramid - standard Benefits based on current data access

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• Low Non-Technical losses (various meter types)• Revenue protection – meter + analytics• Collection improvements – Prepaid• Decreased Technical losses – meters/sensors • LV grid operations management – SCADA/GIS• Outage management – lower SAIDI / SAIFI• Advanced tariff plans (TOU, CPP)• Demand Management• Reliable and rich meter data• Decreased OPEX

• Automated processes & workflows• Clean & consistent data• Ready for Various market models• Ready for unboundling• Revenue Protection – analytical• Collection improvements – smart collection

• Low Technical losses • Advanced maintenance – CBM/PBM • Asset lifecycle management • Automated grid operations management• Low SAIDI & SAIFI

• Right decisions• Low risk• Secure planning

Proposed Solution DescriptionNES System - Reliable Collection of Rich Data Set

Why this is so important…?

AMI Value Reverse pyramid – NES advanced version Benefits based on current data access

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Proposed Solution DescriptionNES Architecture Benefits

52

Maximizes grid intelligence while minimizing operating costs by embedding communications and monitoring directly into the electricity grid.

Creates an open environment for competitive services to adapt, modify, and extend their energy and metering services, using market-leading software, hardware, and service providers.

Eliminates risk by freeing a utility to focus on its primary network asset — the electricity grid— by leveraging established, IP-based backhaul communications providers regardless of technology.

Delivers certainty that the system will perform to customers’ and stakeholders’ expectations through a history of reliability, performance, and cost savings provided to tens of millions of homes.

Future proof supporting integration and interoperability with different technologies, vendors and protocols

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We assume, Ukraine is considering the overall systems security as one of the most important aspects for the technical evaluation for the smart metering system as a national security concern for Ukraine. The Networked Energy Services (NES) infrastructure provides many mechanisms to ensure the security and reliability of data collection, transfer and storage.

Multi-layer security is an integral part of the NES system architecture, and both authentication and encryption are mandatory in the system. All data in every message - regardless of protocol or medium - is encrypted end-to-end for each link from the meter to NES System Software, and back again. This protects the privacy of customer information, and ensures data integrity. In addition, every message is authenticated.

Proposed Solution DescriptionSecurity

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Always OnSecurity is a cornerstone of NES System and cannot be removed. This is to minimize the risk of misconfiguration and to mitigate a whole class of attacks that aim to disable or subvert security mechanisms.Efficient and ReliableThe hardware, software, and the network architecture that brings it all together have been carefully selected and optimized for even the most resource-constrained and unreliable networks and devices. As a result, NES System delivers exceptional performance and reliability while maintaining a secure system. Professional Security Audits and ResearchNES System is regularly audited by professional third-party security experts to make sure our solution’s security guarantees are met in theory as well as in practice. NES is also engaged in academia to follow and help advance the state-of-the-art in grid security.

Best PracticesThe design and implementation of NES System strictly follows modern and proven best practices and recommendations from security experts and renowned organizations such as NIST and ENISA. Key management, selection of cryptographic algorithms, key lengths, security protocols, audit logging, and intrusion detection are just some of the areas where NES System relies on decades of security research and proven methods.

Disaster RecoveryUnfortunately, there is no such thing as a perfect threat-prevention system for smart grids in practice. NES System is therefore designed to provide the information and tools needed so utilities can thrive in the face of cyberattacks and business crises.TransparencyNES system does not, and will never, use or rely on proprietary protocols or algorithms. The NES security system is secure even if everything about it, except the keys, is known.

Proposed Solution DescriptionNES System – Security 1/2

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End-to-End Security and PrivacyThe NES architecture enables efficient and scalable end-to-end protection (encrypted and authenticated) of customer data and meter management. This ensures that customer data originating from a meter is unreadable until it reaches the utility’s central system, and that only the central system is able to reconfigure the meters.

CompartmentalizationSmart meter deployments can contain millions of meters located in potentially hostile environments. In Patagonia, a meter compromise does not lead to the compromise of other meters or nodes in the grid. This minimizes the risk of attacks spreading from the millions of edges in a grid and reduces the impact of meter compromises in general.

Device SecurityNES meters and data concentrators (DCs) are fully equipped with modern software and hardware tamper-prevention and detection mechanisms. Meter HSMs, encrypted key stores, and physical tamper alarms are just some of the mechanism in place to prevent and detect physical tampering of a meter or a DC.

Network SecurityAll network links in Patagonia provide confidentiality (encryption), integrity, mutual authentication, and replay protection. Denial of Service; and other availability-limiting scenarios, are mitigated as much as the underlying network infrastructure allows for.

Key ManagementKeys are automatically updated/renewed on a regular basis with respect to a key life cycle configuration, and can also be revoked and updated manually. This reduces the overall risk of compromised keys.

Proposed Solution DescriptionNES System – Security 2/2

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Agenda

1. Ukraine DSO Issues, challenges and Business needs – NES experience

2. How the NES AMI Platform can help Ukraine3. Smart LVIV OBLENERGO 4. Smart VOLYN OBLENERGO5. Smart KHMELNYTSK OBLENERGO6. Proposed Solution Description7. NES Capabilities & Experience 8. Questions

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A Legacy of Innovation; A Future Without Limits

From the Innovative Minds at Apple and Echelon, we have built Networked Energy Services with the leading minds and technology to usher in a new era of smart energy to make the world a better place.

Smart ComputingInnovation

Smart CommunicationsInnovation

Smart GridInnovation

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1988Echelon founded by AC Markkula to create energy control solutions

1990Launched the LonWorks control networking platform

2010

1998IPO on NASDAQ

2000Won Enel contract for enabling technology for 30M+ smart meters

2005Won first major NES production customer: Vattenfall Sweden

2012

2011First major streetlighting win in China

2000Honeywell makes global commitment to LonWorks

2009Won Duke Energy

contract

2009LonWorks becomes global

ISO standard for building controls

1999LonWorks

becomes US national control

standard

2004US Army Corps of

Engineers standardizes on LonWorks smart buildings

2006LonWorks becomes China national control standard

Pioneering Energy Control

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Worldwide Operations

USA headquarters R&D Centers located in Silicon

Valley, Fargo, ND & Poland Regional Offices located

throughout the world including Poland, Germany, Austria, UK, Netherlands, Taiwan, UAE & Lebanon

Products are Designed in the USA/Europe, Manufactured in Europe (Poland).

Partners include Mitsubishi, Apator, Panasonic, Oracle, etc. make OSGP compatible products & software

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Italy powers 30 million meters

United States 630K meters

Sweden 600K meters

Finland 670K meters

Netherlands65K meters

Denmark 390K meters

Sweden 400K meters

Sweden 38K meters

Austria 175K meters

Denmark 170K meters

Poland 330K meters

Russia 410K meters

Denmark 235K meters

South Africa35K meters

Actual projects running for years, with industry-leading reliability and performance

History of Successful Projects

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Results Matter - Field Proven Reliability

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Scalable to Millions smart meter devices in 1 yearISO and EU MID CertifiedGlobal markets: IEC (and BS), ANSIExpansion factories in planning in the Middle East and Caribbean

Designed in California, Built in the European Union

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Why Choose NES? Proven, Open, Multi-Application, Insight

Powering hundreds of millions of smart grid

transactions daily

Safe Choice

Proven Partner Open Standard InsightMulti-Application

Open and extensible at every level of the

architecture

Future-proof

Beyond AMI; add more applications and services

over time

Best ROI

Local intelligence and data points allow utilities

to troubleshoot and predict more network

problems

Reduce costs Improve reliability (99+%)

Represents Highly Attractive Adjacency to Existing Business

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Focus on Innovation—3 Tier Next Gen EAP

Platform Leveraging the Latest in Embedded Technologies

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OSGP Alliance

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• Solar Inverters• Utilities can measure renewable energy generation• Most solar systems include their own metering• ControlPoint can attach an Inverter to AMI

• EV charging stations• Distributed Control via Edge Control Node• Manage charge times, Manage load

• Grid Automation• Transformer Asset Management

• CT metering plus multiple sensor inputs• Monitoring switch gear / automatic re-closers• Power factor controllers• Load Management controls

Some Smart Grid Devices

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Smart City Linz 250.000 (electricity) + district heating, gas and water load management (replacement of ripple control system): Energy related services:

Substations Monitoring Automated Street Lighting Individual billing (sub-metering for third parties)

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SMART CITY WROCLAW

CASE STUDY

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TAURON OVERVIEW

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TAURON OVERVIEW

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OBJECTIVES

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• 100% DATA• 100% Connectivity• Interchangeability• Security• Meter + GRID Sensor• Open HAN port• Optimal TCO

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POLAND – SMART GRID STRATEGY

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QUANTITY

users 2014 2015 2016 2017 2018 2019 2020

PGE 5 000 000 250 000 250 000 500 000 1 000 000 1 000 000 1 000 000 1 000 000

TAURON 5 200 000 260 000 260 000 520 000 1 040 000 1 040 000 1 040 000 1 040 000

ENEA 2 200 000 110 000 110 000 220 000 440 000 440 000 440 000 440 000

ENERGA 2 800 000 140 000 140 000 280 000 560 000 560 000 560 000 560 000

RWE 900 000 45 000 45 000 90 000 180 000 180 000 180 000 180 000

Other 400 000 20 000 20 000 40 000 80 000 80 000 80 000 80 000

TOTAL: 16 500 000 825 000 825 000 1 650 000 3 300 000 3 300 000 3 300 000 3 300 000

POLAND – SMART GRID STRATEGY

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• DATA HUB - OIP

POLAND – SMART GRID STRATEGY

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Data collection 15 min LP – SLA - 95% (n+6), 99,5% (n+36), 100% (n+

System performance SLA Universal interchangable HAN port

POLAND – SMART GRID STRATEGY

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TAURON OVERVIEW

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TAURON OVERVIEW

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COMPETITION LANDSCAPE

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TAURON OVERVIEW

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Key Safety Investment criteriaObjectives in TAURON roll out meet Regulatory approach

1. High SLA as a key project success criteria - end-to-end solution providers - reliable , experience protocol

2. Features: - Minimum 128 bit Encryption - HAN – open port - no limiting of any PLC technology - open solution2. Interchangebility and interoperability project scope with 2 vendors - legal and procurrement docuemntation - real intechangability 3. Decision criteria and scope - KPI

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TAURON Smart City Wrocław Overview

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OSGP Smart Meters are MEP Enabled for all kind of Applications - Future-proof, Secure and Inter-operable

•Water, Gas and Heat meters•Load control devices•In-Home Displays•Home gateways•Additional security services•And much, much more!

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Project methodology with end2end Smart Grid know-how

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Project methodology with end2end Smart Grid know-how

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89

89

PlanningCustmer

infoPlaning areaLetter send

DC Com.

Meter roll out clean up Custermers

clean upInstallation

delivery Com. clean up

Statistic period

SAT-N delivery

SAT-N deliveries

FA delivery

SAT-N deliveriesSAT-N

deliveries

Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Step 9 Step 10 Step 11

Milestone Milestone Milestone

Project methodology with end2end Smart Grid know-how

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Teams managedby Coordinators

Coordinators – Leaders of teams

CoordinatorRollout planning and communication with

client

Coordinator Installation teams

management in the field

Coordinator Supply technical verification and

complain management

Coordinator Communication infrastructure

preparation (LV/MV stations)

Coordinator Utilization of old

meters management

Coordinator Analytical and diagnosic tools

Coordinator Parametrization and order management

Coordinator Development

Coordinator Implementation and

integration

Coordinator IT security

management

Coordinator Incidents and IT

attacks management

ROLLOUT AREA MANAGER

HARDWARE AREA MANAGER

IT, SECURITY, INTEGRATION SERVICES MANAGER

Project Office

Financial Controller

Risk Management Officer

Processes and Change Management Officer

Quality and SLA management Officer

EXECUTIVE DIRECTOR

STARTEGIC MANAGEMENT OF SMART GRID PROGRAM

Team Take off of old

meters Team

IT security

Team Incidents and IT

attacks

Team Analysys and architecture

Team Implementation

and maintenance

Team Development

Team Testers

Team HW &SW requirements

Team Meter parametrization

Team Call Center services

Team Analytical and

diagnosic services

Team electric fitters &

installers

Team Technical pilot

installation

Team Technical support

Team Service of ordersTeam

Logistic and warehouse management

Coordinator Trainings

Coordinator Operational level of communication with

client

Project methodology with end2end Smart Grid know-how

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Use case

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Voltage deviation location identificationUser Experience

• Operations user interface depicts power quality issue

• Correlating information from multiple sensing points and GIS information allows source identification of issue

• Precise work instruction to resolve issue reduces time to trouble shoot in the field

• No customer visits to locate issue location required

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Voltage deviation location identificationHow it works

• ΔU >7V (3%) → Deviation• LVGM + GIS maps sensor

location logically and geographically

• Fault location between fist sensor with deviation and after last without

Per Phase Voltage Measurements in 3-phase distribution grid

User Experience

Data Analysis

Sensor Network

Capture DataData becomes Insight

Display actionable, accurate Grid Information

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Outage and Power Quality Monitoring

• Outage and phase loss• Sag and swell • Over current• Power factor• THD• Correlate information from all meters

in the LV grid

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Power Quality Monitoring (cont’d)• Profiling Voltage values and classification of Voltage variation

between phases brings immediate, at a glance view of an issue with the earth connection on a particular feeder

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Power Quality Monitoring

• Remotely Detect Power / Voltage Quality issues

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Power Quality Monitoring (cont’d)• Analysis of the Supply Point Voltage series

compared to Transformer Output (or nearby meter)

[dotted lines = end-user supply point]

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Power Quality Monitoring (cont’d)

• GIS integration helps identifying the point of failure

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Agenda

1. Ukraine DSO Issues, challenges and Business needs – NES experience

2. How the NES AMI Platform can help Ukraine3. Smart LVIV OBLENERGO 4. Smart VOLYN OBLENERGO5. Smart KHMELNYTSK OBLENERGO6. Proposed Solution Description7. NES Capabilities & Experience 8. Questions

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Thank you for your attention!